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Further dinar clarifications and updates

Jan 13, 2011

In posting the Jordan bank site, with its rate showing 1 dinar equal to $3.22, I did not mean to imply that the official revaluation had already occurred. You still cannot go to the bank and cash in dinars for dollars.

What some of these overseas banks are doing is trying to buy dinars from the public in the guise of a revaluation. They know that a hefty revaluation is soon coming, and they want more dinars. Unfortunately, it appears (from reports) that the Central Bank of Iraq is no longer selling dinars as it had been doing--at least not in the large denominations. So banks and dealers are having a difficult time obtaining dinars to sell to the public, and now there is a reverse flow as the banks try to buy back dinars at a rate lower than the expected revaluation rate that is soon coming.

It appears that the Kuwait bank is offering their citizens the equivalent of about a dollar per dinar. Perhaps the Jordanian bank's rate of $3.22 per dinar is their attempt to buy dinars as well before the official revaluation. I hear that Syria is doing the same. Whatever the case is, this shows that these banks are expecting a revaluation rate that is much higher than they are currently offering to buy people's dinars.

So don't try to sell your dinars to the bank yet. Wait for the official revaluation rate to be published. I will publish it here, and others will have it on their sites as well.

The fact that V.P. Biden and Sec. of State Clinton are both in Iraq this week, along with high-level Kuwaiti officials (who have not been to Iraq since 1989), leads me to believe that the revaluation is becoming imminent. Biden has been presiding over this issue since he came into office. Mrs. Clinton has a large stake in it as well. Obviously, Kuwait does, too.

There is another interesting side line to all of this. It is mentioned by Bob Chapman of The International Forecaster that just came out:

"A little known clause in the gigantic Dodd-Frank financial reform bill went into effect January 1st. All funds in a "non-interest-bearing transaction account" are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010 through December 31, 2012.

This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 availabe to depositors under the FDIC's general deposit insurance rules.

It is unclear the purpose of this temporary status, but certainly we can speculate that it is to protect the elite's deposits should another catastrophic financial collapse happen in the next two years.

The official purpose as stated by the financial bill itself is beyond convoluted . . .

I suspect that the real purpose of this unlimited deposit insurance policy is to protect the large sums of money that "the elite" will be wiring to their accounts once the dinar revaluation takes place. This will give them two years to spend or invest the money in other things until the insurance policy expires.

Anyone can take advantage of the same law. You may want to ask your bank to set up such a "non-interest-bearing transaction account" that is fully insured no matter how much you deposit into it. This would give you two years in which to use the money to buy things of real value, such as land, food, gold, silver, or spending to improve your health. At the end of 2012 your account would still be there, as long as the bank was solvent, but it would no longer enjoy unlimited government insurance.

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Category: Iraqi Dinar
Blog Author: Dr. Stephen Jones